The demonetisation of Rs 500 and Rs 1,000 currency notes is a “very good step” to curb the menace of black money and will help check stashing of funds to a large extent, the CBDT chief today said as the department prepares to keep an eye on any suspicious transcation. “This is a very important step. This decision shows that the government has no tolerance for black money,” Central Board of Direct Taxes Chairman Sushil Chandra told media.

He said “at this moment”, the annoucement made by Prime Minister Narendra Modi in this regard last night will help in curbing the menace to a “large extent”.

He said the I-T department and the CBDT are working out modalities of the role that they will “specifically” play in the aftermath of the decision made wherein Rs 500 and Rs 1,000 currency notes are not a legal tender from today.

Sources in the department said the taxman would be keeping an eye on remittances made using the two currency notes, beyond a certain threshold.

The department would work in close coordination with banks and the Financial Intelligence Unit to keep an eye on suspicious transactions resulting after the de-monetisation of the two big currencies, they said.